Garden Office - Personal or Limited Company Purchase
Discussion
A quick search of PH didn't throw up any recent guidance from Eric and the other PH accountants, and Google finds plenty of conflicting advice so I thought I'd ask here for some up to date guidance / opinion.
The facts:
- I run my own VAT registered Limited Company and increasingly work from home, to the extent where I dedicated office, rather than a dedicated room in the house is needed.
- No clients visit the office, just myself carrying out general administrative / office work.
- A log cabin (£fewK + minor groundworks + new electrics / spur etc) would fit the bill quite nicely and be cheaper in the long term than renting office space.
- Use would be exclusively business.
Would it be sensible to purchase this as a company asset rather than buy it personally and then rent it to company? The main benefits appear to be the ability to reclaim VAT and not have to extract the funds from the company (incurring personal tax), but I've read I can't claim AIA on buildings.
I'm not too worried about CGT (cabin could be dismantled and not included in any sale) nor the suggestion of business rates being levied (I can't find anybody who has actually had them applied in this scenario).
Back in 2011, the guidance on here from Eric & co was that it was a sensible thing to do, is this still the case?
The facts:
- I run my own VAT registered Limited Company and increasingly work from home, to the extent where I dedicated office, rather than a dedicated room in the house is needed.
- No clients visit the office, just myself carrying out general administrative / office work.
- A log cabin (£fewK + minor groundworks + new electrics / spur etc) would fit the bill quite nicely and be cheaper in the long term than renting office space.
- Use would be exclusively business.
Would it be sensible to purchase this as a company asset rather than buy it personally and then rent it to company? The main benefits appear to be the ability to reclaim VAT and not have to extract the funds from the company (incurring personal tax), but I've read I can't claim AIA on buildings.
I'm not too worried about CGT (cabin could be dismantled and not included in any sale) nor the suggestion of business rates being levied (I can't find anybody who has actually had them applied in this scenario).
Back in 2011, the guidance on here from Eric & co was that it was a sensible thing to do, is this still the case?
EU_Foreigner said:
Is it still the case that you can not store a single personal item in there when claiming the VAT back?
On my building, I was advised to do 80% business, 20% personal to eliminate any issue in that aspect by my accountant.
Good god what are HMRC going to do send a team round to inspect items found within, what about the clothes you are wearing while standing in there. Need to buy a uniform to work from home office?On my building, I was advised to do 80% business, 20% personal to eliminate any issue in that aspect by my accountant.
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